New Fuel Prices Lead to Increased Costs for Motorists

By Samkele Mchunu

Motorists across the nation are bracing themselves for another hit to their wallets as the prices of select grades of fuel surge starting today.

The Central Energy Fund (CEF) has unveiled the latest adjustments, which paint a grim picture for consumers at the pumps. The revised fuel prices are as follows:

– Petrol (93 ULP & LRP): Inland prices will see a hefty 65 cents surge, while coastal areas will face a 58 cents increase.

– Petrol (95 ULP & LRP): Inland prices will spike by 67 cents, with coastal areas experiencing a 60 cents hike.

– Diesel (0.05% sulphur): Inland regions will witness a 3 cents uptick, while coastal zones will see a slight decrease of 3 cents.

– Diesel (0.005% sulphur): Inland prices will dip by 1 cent, while coastal regions enjoy an 8 cents reduction.

– Illuminating paraffin (wholesale): Inland prices are set to decrease by 29 cents, whereas coastal areas will see a 35 cents drop.

– Single Maximum National Retail Price for illuminating paraffin: Nationwide, consumers can expect a 58 cents decrease.

– Maximum LP Gas retail price: A modest 19 cents decrease is anticipated.

The impact of these adjustments is palpable. For instance, in Gauteng, a litre of 95 petrol, previously priced at R24.45, will now set consumers back R25.12.

“The average international product prices for petrol increased, while diesel and illuminating paraffin decreased during the period under review,” stated the CEF. The appreciation of the rand against the US dollar also played a role, leading to lower contributions to Basic Fuel Prices across various categories.

Adding to the burden, Finance Minister Enoch Godongwana announced in February’s Budget Speech increases to the Carbon Fuel levy by 1c per litre on petrol and 3c per litre on diesel. However, no adjustments were made to the General Fuel and Road Accident Fund levy for both petrol and diesel.

“As of April 3, 2024, the Fuel Levy in the price structure of petrol and diesel will increase to 396.0 c/l and 384.0 c/l respectively, while the Road Accident Fund Levy will remain at 218.0 c/l,” the CEF confirmed.

As consumers grapple with rising living costs, these fuel price hikes are sure to reverberate across various sectors, impacting household budgets and the broader economy.